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Shimon Peres: Israel and Iran could negotiate

Well to clarify the oversimplification a little more.
The two state solution is long gone imo, and also according to Mearsheimer and other analysts/activists like Robert Fisk.

The situation has regressed to a stage, where it is no longer possible to withdraw settlers from areas, which are otherwise needed to form a viable (key word) Palestinian state. Such would require water resources, agricultural land, East Jerusalem, Palestinian bordering with Jordan without Israeli control. Among other things. None of those, of which, Israel will be willing to accept.

I mean even if there were Israeli politicians with such political will (and there practically arent many, to be frank), they simply would not have the power to do it.

There will not be "demographics problem" within future defined Israeli borders. Because most of the agricultural land Israel has taken, the Palestinians there have been forced out.
It seems Israel's strategy to the "demographic problem", is by massing Palestinians in fenced ares or "enclaves" (if that is not apartheid, I dont know what is), and then say: "well now its up to the Palestinian authority to administer those areas whichever way they like, not our problem".

Only problem being it would not be viable. It will be extremely hard to hide such a fact. Maybe for now, it will work and it can be concealed.
Eventually this strategy will erode, and more and more will recognize it as apartheid. Rather than putting the burden on the Palestinian Authority, which I predict will eventually dissolve anyway.

But still a little hard to say what will happen or how it will unfold, in detail. But this is the general outlook, as I see it.
 
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